Interflora starts campaign on buyout

INTERFLORA chief executive Steve Richards is trying to persuade the firm's 1,800 members to accept a £23m buyout by 3i, which will land florists windfalls of £5,000 to £12,000.

Member shops will be allowed to retain a shareholding of up to 35%. Some revel shop owners are resisting the change and fear the management will sew up a cosy deal.

Richards says: 'Members are facing a more competitive environment. Interflora needs to become dynamic, commercial and focused on the consumer.'

He wants to 'change the culture' of the company, beef up the website and encourage shops to sell champagne alongside flowers.

Interflora accounts for 34% of the delivered flowers market but Tesco, Next and Marks & Spencer are encroaching on its share. The 3i deal was chosen from eight bids but still needs backing from 75% of members to go through.

Richards last month threatened one of the rebels - David Adair of the Independent Stakeholders group - with legal action over comments he is alleged to have made about the board.

Adair said: 'The board is being heavy handed. The deal on offer is a management buyout dressed up as something else.

'Management haven't told us the full deal and members can see the business plan only if they sign a non-disclosure agreement.'